The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-02-09
A DEFENSE
Of the Bankers and Merchants
Mutual Life Association.
SAN Francisco, February 4, 1885,

1
1 To the Editor of THE HERALD.
In a recent issue of your paper an
article was published in reference to
assessmentinsurance companies, which
l am satisfied was instigated, if not
written, by some rival of this modern
and economical invasion upon the
heretofore undisputed territory of old
line insurance companies, and when
one of the understrappers of the Old
line insurance makes an attack upon
his betters, the assessment plan OF
insurance, the coat fits me, and | pro
pose 10 answer his insinuations, and
misstatements in a manner that will be
clearly understood by the public, if not
! by the Anticipated insurance solicitor.
whom have reason to believe is behind
this underhand attack upon success
| full rival.
On recent visit to Utah we were
more successful than any Insurance
association that has ever opened an
Office for the transaction of business in
that Territory; having received appli-
cations for nearly quarter OF million
IOuT
weeks, and We are not at all astonished
at the dies perate efforts being made to
secure portion OF our business.
The Bankers and Merchants was
organized by respectable anu honorable
capitalists of California for the purpose
OF furnishing a sound and relia bic
mutual insurance, at the least possible
cost, and they have succeede admira-
bly,. In the first year of their existence
they have written over s. OO000J of
insurance, and have had but three death
losses, all of which have been paid in
full. The insinuatiOn in the article
before mentioned that policies have
been given away, and that the assess
ments are used for expenses, is a false
hood on its face. for the expenses OF the
Bankers and Merchants are met by the
annual dues, and every dollar of the
assessment money is sacredly devoted
to pay the mOrtuary losses, setting
aside twenty-five per cent. for the
reserve fund, which Will provide for the
payment of paid up policies.
The success of the'asSesSment plan of
insurance has partially put stop to the
drain of millions of dollars that every
year has found its way to the east for
Insurance premiums, and having had
considerable experience in old line life
insurance, l desire to inform ,he people
of Salt Lake City how much they are
throwing away by paying large pre-
miumS to the men who miSrepresent
mutual life insurance, not from honest
convictions. but from a desire to line
their pockets with gold. AS an ilustra-
ton, take man of fifty years of age,
who insures in the old line life insur-
ance Company, on the plain life plan
for $4,000. his premium is $471.SO per
annum. 1t is divided up by the inside
managers as follows: $I34 so to put into
the expense fund. $129. 20 into the death
loss fund, out of which is paid the
trifing dividends hich they pay These
two funds pay the entire expenses of
the policy, and the balance, $207.30 goes
into the reserve fund, which happens to
be their banking capital, and which
represents the amount of profit they
make out of the policies every year. and
which is used for their own individual
benefit, and the policy holder never
receives one cent from this sum. Their
agents and solicitors receive from forty
to fifty per cent. of the first years
premiums, and have renewals for
after years, which is substantial in
ducement for them to become success
jul rivals of Ananias, to bolster up
system that is fast falling to pieces, as
the public learn to understand and
condemn their greedy methods. a
man insuriIg in the old line COM
panies has to pay his proportion OF the
princely salaries paid to the officers
and directors Of their home offices.
As an instance, one company pays
-
their actuary $4,000 a year, their
director $4,000 a year, making a salary
roll of over 100000 year for orha-
mental figure heads, which the poor
their policies in these rapacious insti-
buttons, making it a rather expensive
luxury. The Bankers and Merchants
simply charge the cost of mortality you
are insured in your own company. no
large capital is required for speculative
managers To handle. Honest treatment
to the widows and orphans is our watch
word, and every dollar is secured from
fraudulent conversion, by honest
men, and ample bonds. When death
occurs the members are called upon for
an assessment, which is paid promptly
to the heirs of the deceased. The presl-
dent and board of directors being
interested parties, and having pride in
the success of so laudable and benevolent
an institution, serve without salaries,
while the affairs of the company are
carried on in an economical and open
manner, with full access to all its affairs
from each and every member OF the
association. If the Bankers and
Merchants made no inroads into the
immense revenues of these devil fish, no
attack would have been made upon US,
or our plan of insurance; but we can
assure the gentlemen that this associa-
ton will 1--we long after they and their
falSehoods have been buried in oblivion.
RICHARD X. ALLEN,
General manager Bankers and Mer-
chants Mutual Life Association.